Bill includes additional Small Business & Hospital Relief Funding
On Friday, April 24, President Trump signed the Paycheck Protection Program (PPP) and Health Care Enhancement Act into law. The new aid bill is boosting resources for various initiatives in response to the coronavirus pandemic.
The legislation includes the following:
- $310 billion in ADDITIONAL funding for the Paycheck Protection Program.
- Community lenders, focusing on rural areas, under-banked neighborhoods, and minority groups, will receive $60 billion of the funds. Of this $60 billion:
- $30 billion allocated for FDIC-insured banks and credit unions holding between $10 billion and $50 billion in assets.
- $30 billion earmarked for lenders providing loans to low-income communities and those who lack access to financing (community banks, credit unions, and community development financial institutions that hold less than $10 billion in assets).
- $60 billion is directed funding for the Small Business Administration’s (SBA) Economic Injury Disaster Loan program. $10 billion explicitly allocated to the SBA’s fund for small business disaster relief grants.
- $75 billion in aid for hospitals, in the form of reimbursements for coronavirus-related expenses and lost revenue.
- $25 billion for funding to boost testing for the coronavirus ($11 billion of the money is allocated specifically for states and localities).
It is not currently clear when the money for the overwhelmed PPP will become available. After the passage of the CARES Act, the $349 billion allocated for PPP funds was exhausted in just 12 days. It is expected the replenished funds will run out quickly again.
